Urodynamix Technologies Ltd. (TSX VENTURE:URO) today reported its financial results for its fiscal second quarter ended June 30, 2009. The Company reported revenues of $21,871, a 70% decrease over the same quarter of the prior year. The Company's order backlog at June 30, 2009 was $92,576 compared to nil at the end of the comparative quarter June 30, 2008.
The decrease in revenue resulted from not being able to finalize contracts with new distributors for the uroNIRS 2000 initially targeted for completion during the quarter. "Although the Company made significant progress in the expansion of its worldwide distribution, the Company was not able to complete these new agreements in the second quarter. The results for the quarter are below our expectations and we have taken steps to get the sales of uroNIRS back on target including changes in personnel and the re-alignment of duties. Notwithstanding these results, customer and dealer feedback remains encouraging and new sales activities are already showing results. Management is confident that the expansion of its distribution channels can and will proceed as planned with this new and enhanced sales infrastructure.
In addition to continued efforts to expand worldwide distribution and an increased focus and resources for sales in the US market, we have also made material reductions to our infrastructure costs, allowing us to reduce our net cash burn. These cost reductions were implemented in all departments and at all levels throughout the Company including a voluntary reduction in executive compensation. We believe these activities will allow us to secure the necessary short term financing to allow us to achieve our revenue and earnings targets. The Company retains its confidence in the uroNIRS technology and remains focussed on its successful worldwide launch," stated Barry Allen, President and CEO of Urodynamix Technologies Ltd.
Gross margin at 66.1% of revenue increased from 51.8% of revenue for the comparative quarter ended June 30, 2008. Expenses for the three months ended June 30, 2009 were $877,498 compared to $893,858 for the comparative quarter of the prior year, a decrease of $16,360. The increase in sales and marketing, to support the introduction of the uroNIRS 2000 was offset by a decrease in research and development expenses. Administrative expenses at $361,562 are comparable to the same period of the prior year.
The net loss for the quarter ended June 30, 2009 was $909,934 or $0.01 per share basic and diluted, as compared to a net loss of $846,400 or $0.01 per share basic and diluted for the quarter ended June 30, 2008. The increase in the loss was due to the decrease in sales in the quarter and a $47,018 foreign exchange loss on revaluation of US dollar assets and liabilities at June 30, 2009.
As of June 30, 2009, the Company had cash and cash equivalents of $575,027, is a decrease from $2,262,794 at December 31, 2008. Working capital at June 30, 2009 was $505,289 and the Company remains debt free. The Company has taken steps to reduce its monthly cash burn to approximately $150,000 per month and management is actively seeking new financing.